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Today’s workforce has a lot to think about when it comes to money management. With all of life’s financial demands, emergency and rainy-day funds seem to take a back seat because of present expenses and poor financial management. In fact, the Federal Reserve has stated that four in ten American households would not be able to come up with $400 in the event of a financial emergency. So, what happens when that old dryer finally kicks out? Or the roof leaks?

Prudential’s research found that 60 percent of families have been hit with some kind of financial emergency within the past year. For many Americans, the funds will be covered by credit cards, personal loans, or they just won’t be able to fix the problems at all. Unresolved problems in finances lead to increased stress. This stress is almost guaranteed to affect the employees’ work productivity, motivation, and general well-being.

In a 2018 study of 2,603 adults conducted by AARP and Boston Research Technologies, 71 percent said they would likely participate in a payroll-deduction rainy-day savings program if their employer offered one. Furthermore, 87 percent said they would likely participate if their employer matched. Many companies are stepping up to encourage saving for a “rainy-day fund” by creating programs like these or offering resources and reward payments for their employees taking steps to save.

Here are some examples of companies that have taken the leap to help their workforce:

  • SunTrust gives employees $1,000 if they complete an eight-part financial-education course and take certain actions. These actions include enrolling in automatic contributions of at least $20 per pay period to emergency savings.
  • WesBanco Inc. recently began offering its employees the opportunity to earn points to reduce health-insurance premiums by enrolling in a program called Split to Save. Employees who sign up divide their paycheck between a checking account for daily expenses and a savings account for goals including emergencies.

Would your company benefit from providing rainy-day fund assistance? Reach out to Purple Ink today and we can help guide you toward implementation!

Liz Zirkelbach
Liz Zirkelbach
Liz is an HR Consultant with Purple Ink. She has a special interest in finding the perfect fit for a role and creating a happy ending for both the person and the company.

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